When a loved one passes away in Arkansas, their estate often undergoes a legal process called probate. This process involves identifying, valuing, and distributing the deceased’s assets according to their will—or, if there isn’t one, according to state law. Even if your loved one had a will, it doesn’t mean their assets automatically avoid probate. Arkansas law often requires probate to ensure proper handling of the estate.
Knowing which assets are subject to probate is crucial, as it can streamline the process, reduce expenses, and prevent potential disagreements among family members.
What is Probate Property?
Probate property refers to assets that were solely owned by the deceased person—in other words, assets not held jointly with someone else or with a designated beneficiary.
The person in charge of the will (the executor or administrator) creates a detailed list, known as an inventory, to determine the value of each probate asset. This inventory is essential because the court uses it to ensure fair distribution of the estate, either according to the will’s instructions or Arkansas law.
It’s not always easy to determine an asset’s ownership status. It’s crucial to review titles, deeds, account statements, and any legal documents related to the assets in question. A seemingly small detail, like how a bank account is titled, can make a big difference in whether it goes through probate or not.
With that in mind, here are the types of assets that typically fall under the probate umbrella in Arkansas:
Real Estate
The family home is often the most valuable asset in an estate. If the deceased person owned the house solely in their name, or if they owned it with someone else as tenants-in-common, it becomes a probate asset. If one owner dies, their share doesn’t automatically pass to the other owner(s)—it goes through probate. On the other hand, if the house was owned jointly with rights of survivorship, the surviving owner(s) automatically inherits it, keeping it out of probate.
Life Insurance
While life insurance policies are generally designed to bypass probate, they can become entangled in the process if there’s no named beneficiary or if the estate itself is listed as the beneficiary. When this happens, the life insurance proceeds become part of the probate assets, subject to the will or Arkansas law.
Bank Accounts
Bank accounts aren’t always straightforward when it comes to probate. If the account is solely in the deceased person’s name and lacks any beneficiary designations (like “payable on death” or “transfer on death”), it’s considered a probate asset. Joint accounts with rights of survivorship typically bypass probate, passing directly to the surviving account holder(s).
Vehicles
Cars, trucks, and motorcycles are assets, and their ownership status matters. If the vehicle’s title only lists the deceased person as the owner, it’s a probate asset. Joint ownership with rights of survivorship or having a transfer-upon-death beneficiary can help avoid probate in this case.
Non-Probate Assets: A Way to Bypass Probate
Not all assets are destined for the probate process. In fact, there are several ways assets can transfer directly to beneficiaries without court involvement. These are called non-probate assets, and they offer a smoother path for your loved ones.
Non-probate assets have built-in mechanisms that dictate their transfer. For example, property owned under joint tenancy with rights of survivorship automatically passes to the surviving owner(s) upon the death of one owner. This is common with real estate owned by married couples or close family members.
Financial accounts, such as life insurance policies and retirement accounts, often have beneficiary designations. These designations determine who receives the funds upon the account holder’s death, allowing for a seamless transfer outside of probate.
Assets placed in a trust are also considered non-probate. The trust document outlines how the assets should be managed and distributed, bypassing the probate process altogether.
Small Estates and the Probate Process in Arkansas
In Arkansas, there’s some good news for smaller estates: if the total value of the estate is under $100,000 and meets other specific criteria, it may qualify for a simplified probate process. This streamlined approach can be a real advantage for families, offering a faster and less expensive way to settle the estate.
Instead of the traditional probate procedures, the small estate process allows eligible individuals to file an affidavit with the probate court. This affidavit essentially declares that the estate is small and meets the requirements for this simplified handling.
However, it’s important to understand that not every estate under $100,000 will automatically qualify. There are specific rules regarding the types of assets included, any outstanding debts, and the amount of time that has passed since the person’s death.
Get in Touch with a Leading Probate Attorney in Arkansas Today
As you can see, understanding which assets go through probate in Arkansas isn’t always a simple task. The lines between probate and non-probate assets can blur, and the details of ownership and beneficiary designations truly matter.
If you’re facing the probate process, don’t go it alone. Consulting an experienced probate attorney can provide the clarity and guidance you need to ensure a smooth and efficient process for everyone involved.
At Milligan Law Offices, we understand the intricacies of Arkansas probate law. We offer personalized support to help you with every step of estate administration. If you have questions or need assistance, contact us today by calling (479) 783-2213 or by completing our secure online form. We’re here to help.
Milligan Law Offices